Oil and Gas

The growth of oil and gas projects in the Asia-Pacific region has been unprecedented in recent years. Our team has significant experience working throughout the region acting for public and private sector sponsors, developers, bidders, concession holders, project financiers and contractors on major international projects.

We have acted on significant oil and gas transactions and projects in Australia, Papua New Guinea, Indonesia, Malaysia, the Philippines, Thailand, West Africa, the North Sea and North and South America.

This experience includes acting for participants in the upstream, midstream and downstream areas of the sector to: advise on all aspects of exploration and production activities (including environmental and native title approvals); develop and negotiate supply and off-take agreements and associated transportation arrangements; assist with the acquisition, financing or disposal of infrastructure and assets; develop and negotiate engineering, procurement and construction contracts; and advise on competition and regulatory issues.

Through this work, we have been part of multi-disciplinary teams – a distinctive feature of major project work in this sector. Often, our advice is required in a competitive bid context, where our experience enables us to offer solutions on tendering and negotiation tactics and transaction risk identification and allocation. Our lawyers are also regular presenters at the annual conference of the Australian Petroleum Production & Exploration Association (APPEA), which is the peak national body representing the interests of Australia’s upstream oil and gas exploration and production industry.

Upstream

Although many offshore basins with hydrocarbon potential remain unexplored throughout the Asia-Pacific region, the upstream sector has been very active in recent years. Minter Ellison’s team assists industry participants involved in the search, recovery and production of natural gas, ensuring their legal issues and risks are managed.

Midstream and downstream

Minter Ellison has been servicing the mid- and downstream sector since the 1970s, advising on the sale and distribution of natural gas and products, including coal seam gas and LNG. We have worked with clients to establish refineries, petrochemical plants, petroleum product distribution networks, retail entities and natural gas distribution companies.

Since the beginning of 2014, Minter Ellison's leading merger and acquisitions lawyers, working closely with our energy and resources industry experts, have led some of the largest publically announced transactions in the sector – transactions totalling more than A$9 billion according to MergerMarket.

The US Government has moved to act on carbon emissions by requiring US states to reduce carbon emissions from power plants by 30% by 2030. If implemented, the measure may lead to higher US coal exports and greater competition for Australian coal exporters, but may reduce incentives for US gas to be exported as LNG.

The Mineral and Energy Resources (Common Provisions) Bill 2014 (Qld) was introduced to Queensland Parliament on 5 June 2014. The Bill represents the first phase of the Queensland Government's Modernising Queensland's Resources Acts Program for the mineral resources, petroleum & gas, geothermal and carbon capture and storage industries in Queensland.

Government reserves on domestic gas policy, but the pressure mounts. To date, most Australian governments have been reluctant to intervene in gas markets by imposing gas reservation policies. Currently, only Western Australia has an active reservation policy

In addition to the 191 Minter Ellison lawyers named in 2014 Best Lawyers Australia list, 23 of our partners have been singled out for an additional accolade – awarded the title of "Lawyer of the Year".

Allison Warburton and Joel Reid discussed whether state and federal governments might impose gas reservation policies, requiring a portion of gas reserves to be dedicated to domestic consumption, in The Australian on 24 June 2013.

The first State Agreement relating to an onshore petroleum project executed by the Western Australian Government (with Buru Energy Limited, Mitsubishi Corporation and two of Mitsubishi's subsidiaries) received the support of both houses of Parliament in June 2013. As the first State Agreement to cover onshore exploration and development in WA, the Buru Agreement reflects the scale, prospectivity and strategic importance of the project for WA; and critically, the State Government has potentially secured future domestic gas reserves.

ASX has recently tightened up its reporting requirements for listed oil and gas companies, as part of a general review of its rules for reserves and resources reporting. These measures are intended to instil confidence in the market, and reflect ASX's emphasis on transparent markets, informed investors and clear, efficient regulation procedures. This article discusses what you need to do and when to prepare for the changes.

The Standing Council on Energy and Resources has announced reforms to the regime for limited merits review of decisions affecting prices for electricity networks and gas pipelines under the National Gas Law and National Electricity Law. These reforms will place greater emphasis on the need to prove that varying the regulator's decision will produce an overall outcome that is ‘materially preferable’ in promoting the long term interests of consumers.

On 1 May 2013 the Queensland government announced the details for the repeal of the gas electricity certificate (GEC) scheme, and published draft legislation to make 2013 the last liability year of the scheme. Any GECs must be created prior to 30 April 2014.

On 28 December 2012, the PRC National People’s Congress passed Amendments to the PRC Labour Contract Law (the Amendments) in relation to the labour dispatch arrangement. The Amendments will come into force on 1 July 2013.

On 31 December 2012, the China International Economic and Trade Arbitration Commission (CIETAC), a foreign-related arbitration commission set up by the China Council for the Promotion of International Trade (also known as the China Chamber of International Commerce) (CCPIT), released its Announcement on Issues Concerning CIETAC Shanghai Sub-Commission and CIETAC South China Sub-Commission" (the Latest Announcement). This is the latest development in a dispute, which has been on foot since April 2012, between CIETAC, the Shanghai Sub-Commission of CIETAC (CIETAC Shanghai), and the Shenzhen Court of International Arbitration (SCIA) (the CIETAC Dispute). SCIA was known as the South China Sub-Commission of CIETAC before 22 October 2012.

On Tuesday, 29 November 2011, as part of its Mid-Year Economic and Fiscal Outlook 2011-12, the Federal Government announced a package of changes intended to raise A$11.5 billion in new revenue and savings.

On 1 November 2011, the State Council of the People's Republic of China's Decision on amending the Provisional Regulations of the People's Republic of China on Resource Tax (Decision) will take effect. The Decision increases taxes on the sales of certain resources and extends certain existing resources tax nationwide.

The ASX released a consultation paper on 5 October 2011, with reform proposals for the public reporting of reserves and resources by mining and oil and gas exploration and production companies, including proposed amendments to the ASX Listing Rules. In this Alert, we look at the proposals and their likely effect.